If you want to provide for a disabled child or adult, you might want to consider a special needs trust, also called a supplemental needs trust. A special needs trust gives a disabled or incapacitated person the little “extras” in life without endangering their public assistance benefits such as food stamps, Medicaid, or Supplemental Security Income “SSI.” Such trusts can allow for education, travel, and home care above what is provided by public benefits, etc. There are a couple of … [Read more...] about What Is a Special Needs Trust?
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Diversify to Protect Your Investments
Everyone has heard the warnings about putting all your savings into one basket. One only has to look back a few years to see what might happen if you do. Although extreme examples, there was the Madoff debacle, where trusting people invested their entire savings with Bernie Madoff, a shyster who took them to the cleaners, and Enron, where employees put their entire retirement savings into company stock and lost everything when the company collapsed. So how do you protect yourself and your … [Read more...] about Diversify to Protect Your Investments
What If My Loved One Needs a Guardian?
If you are concerned about a family member being able to care for themselves, you might want to consider guardianship. A guardian can be appointed for persons who cannot provide self care or manage their finances, who have dementia, or are otherwise incapacitated mentally or physically. Those who are habitually drunk or abuse drugs or have a developmental disability can also be considered incapacitated for guardianship purposes. There are three kinds of guardianships: Guardian of the … [Read more...] about What If My Loved One Needs a Guardian?
Term vs. Whole Life Insurance. Which One is Best for You?
Everyone knows the value of life insurance and what can happen if you don't have it. A spouse dies, leaving the other spouse with little or no income and no resources. Dreams of staying in your home or sending the kids to college may go by the wayside. Everything caves in on itself. So you need it, but committing to buying it is something else. First off, life insurance is an important part of your financial plan. If you are married or have kids, buying life insurance is a no brainer. There … [Read more...] about Term vs. Whole Life Insurance. Which One is Best for You?
Who Needs a Pour Over Will?
Many people might not know the term "pour over will." But if you want to create a revocable living trust, you definitely need one. A pour over will works in tandem with a revocable trust. (A revocable trust is created while you are alive and can be changed or amended or even terminated during your lifetime. With some exceptions, it becomes irrevocable on your death.) The main benefit of this trust is that it allows your estate to avoid probate and the associated high court costs and attorney … [Read more...] about Who Needs a Pour Over Will?
The Long and Short of Disability Insurance
One of people's greatest fears is that they will get sick or injured, can't work for a long time, get in debt, and then lose their savings and their house, basically losing their independence and dignity. Sounds grim, and it is. If you have enough money in savings or investments that you could weather up to five years of unemployment, stop reading here. For the rest of you, disability insurance might be the answer. But do you need short-term disability or long-term disability, or both? … [Read more...] about The Long and Short of Disability Insurance
Feeling Charitable? Give It Away and Come Out Ahead
What if you bought a piece of property years ago for about $25,000 and now it is worth more than $300,000? You don't want it anymore but want to get rid of it in a way that maximizes your tax advantages. If you sold it outright, you might have to pay capital gains tax, and you don't want that. How about making a charitable remainder trust to your favorite cause? Knowing that both you and the charity will benefit makes it an especially attractive option. How it works: You must be able to … [Read more...] about Feeling Charitable? Give It Away and Come Out Ahead
How To Boost Your Retirement Savings
Along with estate planning naturally comes thoughts about your golden years. Where will you live? How will you take care of yourself? Will you have enough money to live on for the rest of your life? Worries about running out of money as you get older is a common fear. And for good reason. Some studies show that many over the age of 55 have only $10,000, if that, in retirement savings. That's woefully short. Although we all know people who have lived comfortably, but frugally, on almost … [Read more...] about How To Boost Your Retirement Savings
Annual Gift Tax Exclusion: Tax Free Money Zone
If you have a large estate and want to start giving it away, but want to limit your tax liability, consider using the annual gift tax exclusion. What that means is that you can give up to $13,000 per person per calendar year and neither you nor the recipient has to pay taxes on it. So, you can give $13,000 per year to 10 people or 1,000 people and there will be no taxes. And you can do that year after year. (The amount of the exclusion is increased from time to time.) You and your spouse can … [Read more...] about Annual Gift Tax Exclusion: Tax Free Money Zone
Why You Should Consider Advanced Estate Planning
Basic estate planning is fine if your estate is simple and doesn’t require a great deal of arrangements. If, however, your estate has any special circumstances, you may want to consider advanced planning. It can help ease the estate settlement process for your family in three ways. Protect Your Belongings Through features such as Irrevocable Trusts, Advanced Estate Planning offers protection for your belongings. Asset protection keeps your retirement funds and your property safe from being … [Read more...] about Why You Should Consider Advanced Estate Planning
